Manulife Segregated Fund Registered Education Savings Plan (RESP)

The Manulife Segregated Fund RESP is designed to help investors prepare for their children’s future post-secondary needs.

Benefits of an RESP

  • An RESP is a flexible and convenient way to save for a child’s future post-secondary education.
  • Investment income generated in an RESP is tax sheltered as long as it remains in the plan.
  • Government grants may be available to qualified student beneficiaries to help RESP savings grow.
  • There are no annual fees outside of the management expense ratio (MER).
  • A segregated fund contract offers protective features, including death benefit and maturity guarantees.
  • When withdrawn, plan growth and government grants can be taxed at the student’s tax rate (he or she could pay little or no tax on this money).

How does an RESP work?

Anyone can subscribe to an RESP contract for a child – parents, grandparents, guardians, other relatives or friends. The subscriber of the contract generally makes contributions to the RESP. Government grants like the Canada education savings grant (CESG) and Canada learning bond (CLB) are also paid to the RESP, if applicable. Here’s a simple chart to explain how it works:

Subscriber enters into RESP contract with Manulife and names Student Beneficiary(ies) under the plan. Governement grants/incentives (as applicable). Subscriber contributes to the RESP. CESG is paid to the RESP. CLB is paid to the RESP. Provincial education savings programs are paid to the RESP. Manulife administers amounts paid into the RESP. Income is not taxable as long as it remains inside the plan.Manulife makes payments from the RESP in accordance with plan terms.

Types of RESP withdrawals

Student Beneficiary enrolls in post-secondary education




Post-secondary Education (PSE) contribution withdrawal

RESP contributions

Returned tax-free to Subscriber

Educational Assistance Payments (EAP) 

RESP earnings, CESG, and other incentives

Taxable to Student Beneficiary at his/her marginal tax rate

Student Beneficiary DOES NOT enroll in post-secondary education




Contribution withdrawal

RESP contributions 

Returned tax-free to Subscriber

Accumulated Income Payments (AIP)

Earnings on contributions, grants, and incentives

Paid to Subscriber and taxable at his/her marginal tax rate, plus an additional 20% tax 

CESG: unused grants returned to government; no tax consequences. CLB: returned to government; no tax consequences 

Explore our segregated funds

Related material

Before you select a link

Sign in with your Advisor Manulife ID (opens in a new tab). Make sure you've connected your Repsource account.

The subscriber is the individual named on the application and who typically makes the contributions to the RESP. In most cases the subscriber is the annuitant.
The student beneficiary(ies) is/are the individuals named by the subscriber to receive the Educational Assistance Payments (EAPs) from the RESP.

This is for general information only and should not be considered investment or tax advice to any party.

The Manufacturers Life Insurance Company (Manulife) is the issuer of insurance contracts containing Manulife segregated funds and the guarantor of any guarantee provisions therein. Manulife Investment Management is a trade name of Manulife.